Good news for anyone looking to purchase a Tesla to get into the Electric Vehicle (EV) market: One of the more popular models now qualifies for the federal EV tax credit that didn’t previously, thanks to a price drop that makes the model fall within the eligibility criteria.
According to Kelley Blue Book, Tesla dropped prices on two of its most expensive EV models, and one of those price cuts means the vehicle now qualifies for the EV tax credit.
The base price of both the Model X SUV and Model S sedan have been lowered once again, the latest in several price drops this year.
Together, both models have seen seven total price cuts this year, with the Model X dropping from $120,990 in January to $79,990 today. The Model S started the year with a sticker price of $104,990 and now retails for $74,990.
And thanks to the drop in price for the Model X SUV, it now qualifies for the full Federal Tax Credit of $7,500.
“With the latest manufacturer-suggested retail price (MSRP) of $79,990, the Tesla Model X barely slipped itself under the eligibility criteria,” TeslaOracle reports. “Ironically, the Tesla Model S, being a sedan, did not qualify for the Federal EV Tax Credit.” The Tesla Model S is the only EV model from the company that doesn’t currently qualify for the tax credit.
With EVs becoming more popular, some drivers are still plagued by range anxiety resulting from EV chargers being few and far between on the road, leaving them worried that they’ll be stranded with a dead battery.
Although EV charging stations are becoming more common, with an estimated 55,000 public charging stations across the U.S., Tesla has been accused of exaggerating its driving range on the dashboards of its vehicles.
The federal EV tax credits, which are a part of the Inflation Reduction Act, offer a tax credit of up to $7,500 for purchasing a new electric vehicle. But there is a loophole that allows for those leasing to benefit from the tax credits, too.
According to the IRS, any company that leases out an EV is also eligible for the full tax credit. And with that credit, the lessor can choose to transfer that credit to the lessee through lower payments or better terms on the lease.
Which EV Models Qualify For The 2023 Federal EV Tax Credit?
Now, 12 models qualify for the full $7,500 credit:
- Tesla Model X SUV
- Tesla Model 3 Performance
- Tesla Model Y (All-Wheel Drive, Long Range All-Wheel Drive, and 2022 Performance)
- Cadillac Lyriq
- Chevrolet Blazer
- Chevrolet Bolt
- Chevrolet Bolt and EUV
- Chevrolet Equinox
- Chevrolet Silverado
- Chrysler Pacifica PHEV
- Ford F-150 Lightning
- Lincoln Aviator Grand Touring
For full details on which vehicles quality or don’t qualify for the tax credit, visit fueleconomy.gov.